Meanwhile, the company’s net loss stood at Rs. 7,489 – Rs. 8,100 crores, estimates have come out.
Estimates are provided by Nomura, Kotak Institutional Equities, JM Financial and Nuwama Institutional Equities.
The highest revenue estimate is given by JM Financial while the lowest is given by Nomura. As for the net loss, Nomura has projected the biggest decline which it said could widen year-on-year while Kotak sees loss narrowing year-on-year.
The company will announce its quarterly earnings on Monday, August 12th.
Here’s what the brokerage recommends:
Nomura
Japanese brokerage Nomura reported Rs. 8,100 sees a net loss while Rs. 10,600 crore revenue is expected to be flat on YoY and QoQ basis.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is seen at Rs 4,400 crore which may grow by 5% YoY and 1% sequentially. EBITDA margin for the reporting quarter stood at 41% against 39% in Q1FY24 and 40.9% in Q4FY24. Average revenue per user (ARPU) for the reporting quarter is estimated at Rs 148, up from Rs 139 in Q1FY24 and Rs 146 in Q4FY24.
Kotak Equities
Kotak Equities expects Vodafone Idea’s net loss to narrow to Rs 10 crore in the quarter ended June on a yoy and QoQ basis. 7,489 crore will be. It was in Q1FY24 at Rs. 7,840 crore in Q4FY24 and Rs. 7,677 crore is expected to decline by 4.4% YoY and 2.4% QoQ. Net sales in the reporting quarter stood at Rs. 10,618 crore is expected to be a 0.3% YoY decline while flat (0.1%) QoQ growth.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the April-June quarter stood at Rs. 4,225 crore is seen to grow by 1.6% YoY and fall by 2.6%. Meanwhile, the earnings before interest and tax (EBIT) stood at Rs. 1,493 crore is estimated. EBITDA margin is seen at 39.8% which could be 77 bps YoY uptick and 109 bps QoQ climbdown.
“We expect QoQ flat revenue due to continued subscriber decline likely to lead to marginal QoQ ARPU increase. Reported EBITDA likely to decline 3% qoq on sequentially higher network opex,” Kotak said in a note.
“We model EoP subscriber base to decline by 3 mn QoQ (vs -2.6 mn qoq) to 209.6 mn and ARPU to grow 1% QoQ to Rs 148/mo likely to continue subscriber mix improvement,” the note added.
JM Financial
The company’s net loss to JM was Rs. 7,785 crore is expected while marginal revenue growth is expected to be Rs. 10,709 crore is seen. The brokerage sees 0.5% YoY and 1% QoQ growth.
EBITDA in the April-June quarter was Rs. 4,339 crore which is estimated to grow by 4.4% and 0.1% on YoY and QoQ basis respectively.
“We estimate an overall subscriber loss of 2.1 million in 1QFY25 against a loss of 2.6 million in 4QFY24. However, we expect MBB subscriber additions to continue to be muted at 1 million (although TRAI’s April 2024 subscriber data shows that MBB added 1.3 loss of million subscribers),” JM said in the note
Nuwama
Vodafone Idea’s revenue is likely to fall 0.7% QoQ, supported by flattish ARPU and continued subscriber loss. EBITDA margin to contract 70 bps QoQ.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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